Tendering

Procurement of Commodities

To: Project Management Office of the North American Minerals International Logistic System

NAM Tendering Company

Re: Price Reduction Statement

Date: December 8,2002

In connection with our bids for the supply of goods for Package No. 4:item1Dead-BurnedMagnesite underNAMNO. CMC 991208, we, the undersigned, hereby would like to offer price reduction discuounts to our total prices listed in our Summary Sheet for Bid Opening enclosed in this same envelop. The details of our price reduction discounts are as follows:

PACKAGE No. 4: Cead-Burned Magnesite.

DISCOUNT: 15% of EXW price.

Therefore, all the unit EXW price and total EXW price specified in our Summary Sheet for Bid Opening, Bid Form and Price Schedule of Bid for the packages concerned should be adjusted automatically and separately according to the above price reduction discounts. Now our Total Bid Price each item as follows:

Package No. 4 is USD 5,000,000.00.

SAY US DOLLAR FIVE MILLION ONLY.

Bidder’s Signature: Ma Jun.

Summary Sheet for Bid Opening.